I agree with the OP on this one for the reasons that Pete stated. As a seller, it just looks suspicious to other bidders when a zero (or low) feedback bidder bids on my item several times in a row. As a bidder, I wonder if I'm being shilled when I see the same activity.
If you're not going to snipe, then you should bid just once and make that your maximum proxy bid. In fact, I bet it would drive up final values if eBay implemented a rule only allowing bidders to bid twice on the same item. Buyers would know they only have two shots and I bet the bids would be higher.
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